FP&M SETA ANNUAL PERFORMANCE PLAN - For the MTEF Period 2018/19 2020/21 - NAME OF PROVINCE: GAUTENG DATE OF TABLING: 28 FEBRUARY 2018

 
FP&M SETA ANNUAL PERFORMANCE PLAN - For the MTEF Period 2018/19 2020/21 - NAME OF PROVINCE: GAUTENG DATE OF TABLING: 28 FEBRUARY 2018
FP&M SETA ANNUAL
   PERFORMANCE PLAN
   For the MTEF Period
   2018/19 – 2020/21
   Financial Reporting Year: 2018 - 2019

NAME OF PROVINCE: GAUTENG
DATE OF TABLING: 28 FEBRUARY 2018
Contents
Acknowledgement...............................................................................................03                 5.	PROGRAMME PERFORMANCE INDICATORS ALIGNED TO QUARTERLY
                                                                                                                                     PERFORMANCE TARGETS..................................................................................36
Foreword...............................................................................................................03
                                                                                                                                 6. RECONCILING PERFORMANCE TARGETS WITH THE MTEF BUDGET...............41
OFFICIAL SIGN-OFF....................................................................................................04
                                                                                                                                      6.1 Pivotal and Non-Pivotal Budgets...............................................................41
                                                                                                                                      6.2	Types of Programmes –Occupations in Demand to be Supported..............47
PART A: STRATEGIC OVERVIEW

1. UPDATED SITUATIONAL ANALYSIS...................................................................05                             PART C: LINKS TO OTHER PLANS
     1.1	Economic Outlook....................................................................................05
                                                                                                                                 7. FP&M SETA ALIGNMENT TO STRATEGIC INFRASTRUCTURE
     1.2 Service Delivery Environment....................................................................06
                                                                                                                                    PROJECTS (SIPS).................................................................................................49
     1.3	Organisational Environment......................................................................15

2. REVISIONS TO LEGISLATIVE AND OTHER MANDATES.....................................19
     2.1	Relevant Court Rulings.............................................................................19

OVERVIEW OF 2017/18 TO 2020/21 BUDGET AND MTEF ESTIMATES

3. MEDIUM TERM INCOME ESTIMATES................................................................21
     3.1	Expenditure Estimates...............................................................................21

PART B: PROGRAMME PLANS

4.	STRATEGIC OBJECTIVES, KEY PERFORMANCE INDICATORS
   AND TARGETS....................................................................................................28
     4.1 Programme 1: Administration...................................................................28
         Programme 2: Skills Planning....................................................................28
                                                                                                                                 ANNEXURE A: TECHNICAL INDICATOR DESCRIPTIONS...............................................50
         Programme 3: Learning Programmes and Projects.....................................30
         Programme 4: Quality Assurance and Partnerships....................................35                                   ANNEXURE B: ACRONYMS........................................................................................71

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Acknowledgement
We would like to thank the CEO of the Fibre Processing and Manufacturing (FP&M) SETA, Ms Felleng Yende, for her dedicated assistance in compiling this document.

It is acknowledged that this strategic document is informed and underpinned by the new Business Model, which was developed by Ms Yende and adopted by the FP&M SETA Board with
a vision to turn around performance of the FP&M SETA. The FP&M SETA is currently reaping the rewards of the vision of Ms Yende in the operational implementation of this new Business
Model.

Foreword
The Fibre Processing and Manufacturing Sector Education and Training Authority (FP&M SETA) Board takes pleasure in submitting to the Department of Higher Education and Training
(DHET) the Annual Performance Plan for the FP&M SETA for the financial year 1st April 2018 to 31st March 2019.

The National Treasury Framework for Strategic Plans and Annual Performance Plans (August 2010) has been used as the basis for the preparation of this APP. It is submitted in accordance
with the requirements of the DHET, the PFMA, National Treasury regulations and the FP&M SETA Constitution. In line with these requirements, FP&M SETA has developed a Materiality
Framework. In preparing this APP, we have taken into account the funding regulations, which govern the SETA’s levy-grant system. The changes outlined in the new regulations have been
incorporated into our budgeting and training interventions.

This Annual Performance Plan was guided by the Strategic Plan, which is informed by the Sector Skills Plan, which also reflects the Government’s long-term plans, the MTSF. The
Accounting Authority takes overall responsibility for developing the performance targets for the present budget year of the FP&M SETA.

At the beginning of the Annual Performance Plan, the Accounting Authority sets out clear priorities that have guided the development of this plan. The Accounting Authority is responsible
for ensuring that these priorities are in line with the Strategic Plan.

The Accounting Authority uses this opportunity to endorse the Annual Performance Plan and is committed to supporting its implementation.

Mr Sipho Ngidi
Chairman: FP&M SETA Board

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Official Sign-off
It is hereby certified that this Annual Performance Plan:

•	Was developed by the Management of the Fibre Processing and Manufacturing Sector Education and Training Authority (FP&M SETA) under the guidance of the Department of Higher
   Education and Training (DHET);
•	Was prepared in line with the current Strategic Plan of the FP&M SETA;
•	Accurately reflects the performance targets, which the FP&M SETA will endeavour to achieve, given the resources made available in the budget for 1st April 2018 to 31st March 2019.

            Mr Richard Marule                                           Ms Felleng Yende                                                        Approved by:
           Chief Financial Officer                                     Chief Executive Officer                                                 Mr Sipho Ngidi
                                                                                                                                        Chairperson: FP&M SETA Board

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PART A: STRATEGIC OVERVIEW

1. UPDATED SITUATIONAL ANALYSIS
1.1 Economic Outlook

The FP&M sector forms part of South Africa’s manufacturing mix and is experiencing a similar growth trajectory – slightly less growth than that achieved in the economy as a whole. The
South African economy moved into recession with the reported decrease of 0,7% in GDP during the first quarter of 2017, following a 0,3% contraction in the fourth quarter of 2016. It
is the first recession since 2009 as both trade and manufacturing recorded negative growth rates. Similarly, the FP&M sector has experienced decline. Figure 1 shows that over a five-year
period beginning 2010, the sector has not grown beyond 2% year on year.

Figure 1: Year on Year Economic Growth

                                                      4%

                                                      3%

                                                      2%

                                                      1%

                                                      0%
                                                              2010      2011      2012       2013        2014     2015     2016
                                                     -1%

                                                     -2%

                                                                          FP&M           Manufacturing          Overall

Since 2010 average growth has continued on a downward trajectory across the economy; despite some recovery in manufacturing. In the first quarter of 2017, both the secondary and
tertiary sectors recorded negative growth rates. The trade and manufacturing industries were the major heavyweights that stifled production, with trade falling by 5,9% and manufacturing
by 3,7%.

Output in the FP&M sector has tended to follow that in the wider manufacturing sector and the economy as a whole. In the first quarter of 2017 South Africa fell into economic recession
after two successive quarters of no growth. In 2016, output in the FP&M sector comprised 13,7% of total manufacturing output. The FP&M sector’s contribution to total output in the
economy has remained relatively stable over the past five years, at an average of 3,6% year on year. Exports followed a similar trajectory, declining substantially between 2004 and 2014.
Since 2010, there has been some recovery in wood and wood products, leather and leather products, footwear and wearing apparel exports in recent years. The only sub-sector that had
a significant “up-turn” in exports since 2012, is paper and paper products. This is also by far the largest contributor to exports in the sector, valued at R17 billion in 2015.

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The unemployment rate was 27.7% in the first quarter, up 1.2 percentage points from the fourth quarter of 2016. The economy added 144,000 jobs during the first quarter but this was
offset by the number of job-seekers surging by 433,000 people. Despite the increase in unemployment, employment in the manufacturing sector grew by 62,000 jobs.

                                                           30.0

                                                           25.0

                                                           20.0

                                                           15.0

                                                           10.0

                                                            5.0

                                                            0.0

The following structural weaknesses of the South African Labour Market was identified by the IMF, which has implications for the FP&M Sector.

•	Poor educational outcomes
•	Lack of connectivity between job seekers and employers looking for jobs
•	Importance of gaining first job
•	Adversarial labour relations
•	Minimum wage debate
•	Criticism of concentration of power in business, organised labour and SOEs
•	Insufficient small business and entrepreneurship
•	Too much regulation

1.2 Service Delivery Environment

Since inception in 2011, the FP&M SETA has experienced exceptional growth as an organisation and has managed to cement its reputation in the FP&M sector as a credible partner in
skills development. At a national level, FP&M SETA demonstrated support to the National Skills Development Strategy III through the alignment of its sector skills priorities with national
priorities. Year-on-year there has been marked improvement in the overall quality and alignment of FP&M SETA’s Strategic Plan, Annual Performance Plan and Sector Skills Plan. Feedback
reports received from DHET and AGSA positively demonstrates our strict adherence to SMART principles as outlined in the National Treasury Regulations.

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These strategic documents are fully aligned to the core mandate and strategic objectives of the National Skills Development Strategy (NSDS), the 2030 vision of the National Development
Plan (NDP), the key priorities of the Medium Term Strategic Framework of Government (MTSF), the Medium Term Expenditure Framework of Government (MTEF), the Human Resource
Development Strategy of South Africa (HRDSSA) and the Industrial Policy Action Plan (IPAP). Our strategy progressively demonstrates that we are closing the gaps that need to be
addressed relating to areas such as the increased focus on research, monitoring and impact assessment of SETA interventions, the employability pipeline and the effective use of the Skills
Development Levy (SDL), as outlined in the White Paper on Post-School Education and Training.

It is our mandate to ensure that we build a robust and fully integrated post-school education and training system for the FP&M sector that reflects innovation that is informed by research,
and that encourages continued upward growth for all of our industrial sub-sectors.

As funding and implementation partner, the FP&M SETA has played a catalytic role, co-ordinating efforts of various skills development role players, to bring to fruition the vision of
our industry leaders. FP&M SETA partners included media conglomerates, higher education institutions, TVET colleges, community organisations and churches, employer and labour
organisations, youth development agencies, employers, private training providers, and government departments.

The FP&M SETA’s performance increased in 2016/17 to 89.5%, from the 89% reported in 2015/16, having met 34 out of a total of 38 programme performance indicators and targets,
as contained in its Service Level Agreement with the Department of Higher Education and Training.

This increase in performance and service delivery can largely be attributed to the implementation of the business model and organogram that was conceptualised and developed by the
CEO, Ms Felleng Yende, in consultation with the FP&M SETA Board. The business model called for a high performance culture and a customer-centric approach to the FP&M Sector. The
SETA’s Strategic Plan is fully aligned to the White Paper for Post-School Education and Training to ensure the effective and efficient delivery of integrated Post-School Training.

During the 2016/17 financial year, the FP&M SETA registered approximately 13,422 employed and unemployed learners on learning programmes including learnerships, bursary programmes,
internships, skills programmes, apprenticeship programmes and adult education and training pro-grammes. During the same period, approximately 6,757 learners completed learning
programmes relating to scarce and critical skills in the fibre processing and manufacturing sector.

The continuous improvement in performance by the FP&M SETA can be attributed to more efficient processes implemented at regional office level as well as the cultivation of good
relationships with our stakeholders. This resulted in an increased awareness of stakeholders as to the important role that they play in ensuring the timeous registration of learners on
learning programmes, the effective implementation of learning programmes at workplaces and training institutions, and the submission of the required documentation to facilitate
payment processes.

The earlier allocation of discretionary grants to beneficiaries during 2016/17 in line with the processes set out in the business model as conceptualised by the CEO, Ms Felleng Yende, also
contributed to more effective learning programme implementation and more effective reporting.

Increased monitoring and evaluation of projects enabled the SETA staff to identify pockets of excellence and high performing project beneficiaries. It also enabled the SETA to identify
projects that needed additional assistance from the SETA team to ensure that they remained on track in order to perform in line with agreed deliverables.

Sector skills planning remained an important part of the FP&M SETA’s activities. The Sector Skills Plan continues to receive excellent reviews from the Department of Higher Education and
Training. It provides a sound analysis of industrial sectors and articulated sector strategies that addresses current and future scarce and critical skills and occupations in demand within the
sector. Since establishment in 2011, there has been an increase in the overall number of mandatory grant submissions received. This is indicative of our efforts to broaden participation in

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skills development in the sector and promoting sector development and sustainability. In 2016/17 1,396 skills levy-paying companies submitted mandatory grant submissions, as compared
to 1,291 in the previous financial year.

During the strategic planning session it emerged that there is a need to focus skills development interventions on “workplaces of the future” and not only on current needs. There was a
view that skills development must not only lead to employment BUT employment that results in a decent living.

The FP&M SETA established a first of its kind Research Chair Partnership in the Political Economy of Skills with the University of Witwatersrand (WITS REAL) to give effect to its Research
Agenda. As a result, the FP&M SETA undertook research which included a tracking and tracing study to empirically examine the impact of all its interventions, and a performance
impact assessment study to ascertain alignment between the PIVOTAL list and learning programmes funded by the SETA. These research activities, as well as engagements with industry
stakeholders during workshops, interviews and focus group discussions, contributed to the compilation of a best practice Sector Skills Plan that was favourably received by the DHET and
accurately reflected labour market trends pertaining to its 13 sub-sectors.

Communities of expert practitioners continued to develop qualifications linked to priority occupations in the sector, resulting in the submission of 55 occupationally-directed qualifications
to the QCTO for evaluation, resulting in 6 of these qualifications been registered with SAQA.

Strategic planning sessions between the FP&M SETA Board and Management, utilising research results, enhanced the understanding of the skills needs within industrial sub-sectors as
well as improved skills development implementation and operational strategies. This led to an improved and updated Sector Skills Plan, Strategic Plan as well as Annual Performance Plan
being submitted to the DHET within the required timeframes.

The White Paper on Post School Education and Training, which highlights the importance of partnerships between SETAs, educational institutions and the private sector, has received
enormous attention. Many strategic and carefully selected partnerships have enabled the FP&M SETA to have a positive impact in the areas of rural development, disability, poverty
alleviation, gender transformation and youth development.

The successful partnerships between TVET/HET institutions, the SETA, local businesses and industries have produced significant skills develop-ment, work-integrated-learning placement
and employment opportunities for unemployed graduates in the sector. This in turn has increased the skills pool for middle and high level skills to address the scarce and critical skills
priorities.

DG Projects fully aligned to NSDS III and the FP&M SETA Strategic Plan:

•	Occupations in Demand: Scarce and Critical Skills
•	Sectoral Priorities
•	Rural Development
•	Disability
•	Strategic and Innovative interventions to address transformation imperatives

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Various strategic and high impact projects implemented and conceptualised in the FP&M sector, during the period under review, include:

QCTO Qualifications Development

The FP&M SETA in collaboration with the Industry stakeholders have realised many achievements with regard to occupational qualifications de-velopment. The FP&M SETA Board approved
funding to update and restructure the current unit standard-based SAQA registered qualifications with a view to re-align to the curriculum requirements and the new occupational
qualifications framework of the Quality Council for Trades and Occupations. The FP&M SETA has developed and submitted to QCTO for registration, a total of 55 occupationally-directed
qualifications to the QCTO, resulting in six (6) of these qualifications been registered with the SAQA through the QCTO, whilst 49 are in the pipeline to be registered. Since 2012/13
financial year, the FP&M SETA Board approved a total amount of R72,150,000,00 for the development of 74 occupationally-directed qualifications in 10 industrial sub-sectors in the FP&M
sector.

In a report to the QCTO at a special meeting of the SAQA Quality Assurance Committee(QAC) held on 27th June 2016, it was reported that the FP&M SETA: Occupational Certificate:
Footwear Bottomstock Production Machine Operator, Level 2 was considered to be the best submission ever submitted by the QCTO.

During the period under review the FP&M SETA has partnered with the MICT SETA to develop the Journalist Occupational Qualification, which is now in the process of registration with
SAQA through the QCTO.

In terms of occupationally-directed qualifications development, we are following a phase-approach methodology:

• Phase 1: Development of occupational qualifications and Trades, which concluded the 55 Occupational Qualifications that are registered/in the process of registration with SAQA.
• 	 Phase 2: Development of External Integrated Summative Assessments (EISA) and data bank of assessment questions and model answers.
• Phase 3: Development of learning material to standardise across the sub-sector.

Through a concerted effort from the Quality Assurance Division, and in consultation with NAMB and the QCTO, the issuing of artisan certificates has improved markedly, and as a result,
backlog issues have been resolved. In order to improve service delivery to our stakeholders, the division streamlined quality assurance processes and continued our enhancement of a fully
functional Management Information System (MIS) with modules to improve the management and reporting of our learning programmes.

Newly funded Qualifications Development Projects during the period under review, are as follows:

•	R13,200,000,00 was approved by the FP&M SETA Board to fund the development of 17 (trades in the footwear, printing, and textile sector
•	R2,200,706,00 was approved to fund one (1) Industry Entrepreneurial Occupational Qualification within the CTFL sector to address rural interventions and job creation, in order to
   empower rural and community – located businesses in the FP&M sector.

International Leadership Development Programme (ILDP) 2016

The International Leadership Development Programme (ILDP) was conceptualised to uplift and capacitate young leaders who have the potential to grow into the top rungs of business
leadership in the sector.

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During the year under review, the FP&M SETA in partnership with the University of Pretoria’s Gordon Institute of Business Science (GIBS), recruited 25 learners from the wood, textiles, pulp
and paper, publishing, printing, forestry and clothing sub-sectors of the FP&M SETA and implemented a programme aimed at developing high-level strategic and innovative management
and leadership skills, with a view to exposing learners to the model of World-Class Manufacturing (WCM) so that they are able to produce high quality products. It also aimed to improve
the learner’s problem-solving skills, assist with the adoption of new technologies and create a network of powerful young leaders who can be positioned as “champions”. Through this
programme, there is also potential for creating international business opportunities for local industry.

During March 2017, the learners undertook an international educational visit to countries that have tried and tested best practice models in World-Class Manufacturing (China and
Germany) where learners were exposed to plant visits and presentations by the hosting organisations.

As part of the programme, the delegates are required to complete Action Learning Projects (or modules) in teams that cover the following:

• Team 1: The Meta Morphs: Global Competitiveness.
• Team 2: Dunamis: Work Ethic.
• Team 3: Phumelala: Entrepreneurship.
• Team 4: Carpe Diem: Manufacturing Model.

The visits were well rated by the delegates who went to China: “We saw high quality clothing products manufactured in a company which had basic machines. The experience changed
my mind as I now understand that I need to do my best at all times with the resources at my disposal.”

The final ALP presentations and graduations took place in August 2017 at GIBS.

Partnership with the Lead Accounting College to Produce Financially Qualified Business Leaders

South Africa is facing a number of socio-economic challenges that includes the need for economic growth and job creation. In line with the FP&M SETA’s goal to create jobs for unemployed
youth from previously disadvantaged backgrounds, the FP&M SETA has partnered with the Lead Accounting College to train 40 unemployed matriculants in Management Accounting.
This 3-and-a-half-year project offers the learners programmes that range from NQF Level 5 to 7.

The Lead College of Management Accounting is a private tertiary institution that was formed with the purpose of providing financial skills to un-employed matriculants and graduates
from previously disadvantaged backgrounds. The learners participating in this project are young men and women, under the age of 35, who are mostly black and are from rural areas
and townships across South Africa. They are all matriculants and some have previously enrolled in university but were unable to complete their studies for various reasons. This project has
enabled them the opportunity to obtain the prestigious CIMA qualification.

This project was realised as a result of comprehensive research into areas where critical skills were in short supply and are impacting negatively on the growth of the South African economy.
Among the top 5 critical skills identified through this research, accounting skills were one of them.

CIMA (Chartered Institute of Management Accountants) is a leading global professional body of Management Accountants. CIMA professionals are globally sought after and are
highly employable in various sectors of the economy both locally and internationally. The CIMA qualification prepares the learner for a career in business and teaches skills in strategic
management, risk management and decision-making.

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Buyel’Ekhaya Fashion Development Programme

The Buyel’Ekhaya Fashion Development Programme was created to expose disadvantaged youth in the Eastern Cape to nationally and interna-tionally African designers, focusing on the
finishing aspects of fashion design by following a specific process through to the final phase of manufacturing and design. This programme coincided with the Buyel’Ekhaya Fashion Show
which draws a large audience from all over the country. As a core focus for the FP&M SETA, a budget of R2,5 million was allocated to this project.

The implementation of this programme addresses scarce and critical skills in the fields of design and manufacturing. In addition, the programme produced trained, coached and mentored
designers who are able to grow their businesses or further their careers within the industry.

As a result of the programme, 8 emerging designers had the opportunity to work with the best designers in the SADC region, in terms of coaching and mentoring. In addition, 40
beneficiaries have been taught how to successfully establish and manage a profitable fashion business with the potential to transcend into international careers. The fashion show enabled
maximum exposure and awareness of the clothing, textiles, footwear and leather industries. Furthermore, 4 new co-operatives have been registered, contributing to SMME development
in the country.

Clothing Industry Rises to the Challenge

The South African Apparel Association (SAAA) (previously Apparel Manufacturers Association of South Africa) is a leading employer organisation in the South African clothing sector and
as such, represents the interests of a number of small, medium and large employers in the local clothing manufacturing sector.

In order to remain competitive through the timely delivery of high-quality products for the domestic and international markets, the Apparel Manufacturers of South Africa (AMSA) and its
members have identified a critical need for the training of machinists with the ability to operate various types of machines and execute a range of operations.

To this end, AMSA applied for funding from the FP&M SETA to implement machinist training projects at various manufacturing companies in the Western Cape, KwaZulu-Natal and
Gauteng. The programmes implemented were:

                                                                                                                                                       Number of
 Programme                                                                                                                                            Beneficiaries      Budget Allocated

 Skills Programmes for Sewing Machinists, Pattern Making and Cutting and Quality Control                                                                   278                R2 million

 Learnerships in Clothing, Textiles, Footwear and Leather Manufacturing Processes for Sewing Machinists, Pattern Making and Cutting                         80                R2 million

The first learnership programme commenced in August 2016 and was rolled out in the Western Cape, KwaZulu-Natal and Gauteng with a total of 60 unemployed learners. Accredited
training was conducted by TVET SA (Pty) Ltd. Positive feedback was received from all participating sites and the graduates from this project, the majority of whom are black women, will
be entering the labour market as qualified and multi-skilled machinists.

At the end of 2016, TVET SA commenced with mechanics and pattern making programmes at various manufacturing companies. TVET SA conducted an analysis of the current skills of
the employed learners identified to participate in the programme and with input from their employers, provided practical and theoretical training in order to multi-skill the learners in line
with company production requirements.

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The second learnership for 80 unemployed learners was rolled out during March 2017 and training is currently underway at the TVET SA training facilities in Cape Town and at partner
sites in both KwaZulu-Natal and the Western Cape.

The South African Book Fair – Providing SMMEs the Tools Needed for Sustainable Business Growth

The South African Book Fair started in 2006 and is an annual event that coincides with National Book Week. The FP&M SETA, in partnership with the South African Book Development
Council (SABDC) and the Department of Arts and Culture offers small publishers, editors and writers the opportunity to build their own skills and showcase them at the Book Fair, in order
to gain exposure to international publishers and established industry role players to boost their careers and businesses.

As part of the South African Book Fair, and to fill the scarce skills gap in publishing for indigenous languages, the FP&M SETA offered 15 learners an intensive, quality controlled skills
programme to develop their skills as indigenous language publishers. Correct interpretation, alignment to cultures and reliability of translated content is critical to publishing in indigenous
languages and this skills programme seeks to address these challenges. In addition to this, business management skills programmes are also offered in order to assist SMMEs with the
growth and sustainability of their businesses through sound business management practises.

Due to the popularity and value that this event provides the industry, the reach to SMMEs from all provinces, and in both rural and urban areas in South Africa, makes it a key tool for
business owners to improve their skill sets and gain new local and international business opportunities. The event is well attended by the media and receives a lot of coverage through
newspapers, social media platforms and publishing sector mailing lists.

Printing South Africa -Rural Screen Printing Projects

Project Intervention 1

The 2016/17 year saw the successful close-out of the rural screen printing project with Printing South Africa. An amount of R21,800,00 was approved by the FP&M SETA Board to fund the
screen printing technician programme. Twenty-six (26) learners successfully graduated with the Screen Printing Technician Level 1 qualification. Of the 26 learners 20 learners progressed
and completed the entrepreneurial programme.

Learners on this programme were selected from rural areas in Kwa-Zulu Natal, Cape Town and Tshwane in an effort to address youth unemployment. At the end of this programme, the
learners received a screen printing starter kit which contained training manuals as a refresher to what they had learnt on the programme as well as fabrics and the basic necessities in
order to enable them to set up their businesses from home.

We are witnessing another trend in our work with rural communities – a growing number of high school learners do prefer to return to their rural hometowns if good career opportunities
present themselves.

At the FP&M SETA we know that young entrepreneurs exhibit a passion to create. When channeled and combined with entrepreneurial education and real world experience, they can
establish businesses with significant wealth and job creation potential. At the FP&M SETA we believe that engaging, equipping and supporting young entrepreneurs are key to long-term
vitality and sustainability of rural communities.

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Project Intervention 2

Employment is critical for a prisoner’s reintegration into society. Printing SA in partnership with FP&M SETA, is proud to report that the National Training and Development Administrator
of Printing SA, Shallon Mphasane, collaborated with the Boksburg Correctional Services Department to present the Screen Printing and Business Studies courses to 20 inmates who were
imminent for release.

When an inmate is released from prison, skills and employment is a critical factor as to whether he or she becomes a law-abiding citizen or com-mits more crimes. These programmes
facilitated by the FP&M SETA provides individuals with the skills and knowledge needed to find and keep a job once they are released.

The amount committed for this project was R288,000,00.

“By supporting the workforce of the future through educational programs, we are helping them gain the skills they need to reach their full potential”
CEO of the FP&M SETA

Project Intervention 3

Another proud achievement from this partnership with Printing SA and the FP&M SETA is that the KZN Chamber hosted its second Screen Printing Project in collaboration with the Lungisa
Indlela Village, which is based near the Hazelmere Dam outside Verulam. The Collaboration was selected on the basis that the Lungisa Indlela Village runs an active agricultural project,
manufacturing clothing and other fabric based products.

Lungisisa Indlela Village (LIV) NPC was officially established in 2010 with a focus on providing residential foster cluster care to vulnerable and or-phaned children in the Durban area.

The Screen Printing training project to the value of R288,000,00 will empower forty residents in the local community with skills to enable them to provide screen printing services to the
Lungisa Indlela Village where clothing and other fabrics that are produced in its clothing manufacturing department can be contracted out to the community for printing, thereby setting
up several micro enterprises.

Centre of Excellence for Footwear and Leather - Richmond- Indaleni Skills Development Centre

The training centre is an established and recognised Footwear Centre of Excellence and learners are participating in a footwear shoe-making learnership, NQF Level 2 National Certificate
in CTFL Manufacturing Processes.

The skills development centre is fully equipped with footwear manufacturing machinery and equipment and is located in mobile classrooms and workshops, purchased with FP&M SETA
funding.

The Footwear and Leather Centre of Excellence is fully accredited by the FP&M SETA to offer occupational programmes related to footwear manufacturing processes. at the outset:

Phase one to train 40 learners on a footwear making learnerships has been successfully completed. An additional R1500,000,00 was approved in March 2017 to fund a further 20 learners

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HIGH LEVEL AND STRATEGIC RESEARCH RELATED PROJECTS

(i)    WITS REAL: Research Chair Partnership:

With a view of addressing the key strategic objectives of the National Skills Development Strategy relating to establishing a credible skills planning mechanism to promote labour market
research,the Fibre Processing and Manufacturing SETA (FP&M SETA) has established a Research Chair at the School of Education, University of Witwatersrand, in the ‘Political Economy
of Skills’.

The main purpose of establishing the FP&M SETA Research Chair is to provide research support, increase capacity with respect to implementing the FP&M SETA research agenda and
strategy and establish a university based centre of excellence.

In our quest to improve research capacity and expertise within the FP&M sector, -our multi-faceted research partnership with University of Witwatersrand - WITS REAL continues to thrive
with a view to addressing a transformation output of creating a pool of researchers that would be capacitated with the req-uisite research skills.

The following are the key outcomes and focus areas of this research project :

i. 	Production of 4 Phd Gradutaes to conduct research on local and international companies of FPM seta’s 13 sub-sectors to indentify global and local skills ladder of learning, establish
     best practices to inform successful and sustainable future/long term sector growth strategies.
ii.    Profile of the local FP&M industries
iii.   Specific research on FP&M sector and production of Sector Skills Plan, PIVOTAL List and alignment to Strategic Plan and APP.
iv. 	Conduct impact study – tracking and tracer studies of FP&M SETA learning programmes

An amount of R8,577,427,00 was approved by the FP&M SETA Board to support the skills planning and research division in the FP&M sector to ensure accurate skills planning models are
implemented to address occupations in demand and labour market needs in the sector in order to promote sustainable industrial sector growth.

(ii)	Research to promote TVET Partnerships in the FP&M Sector in partnership with the South African College Principal’s Organisation (SACPO) – Public TVET College
      Principals

The purpose of the research is to gather information which will inform and guide strategic and innovative partnerships with TVET Colleges. The FP&M SETA Board approved an amount
of R2,000,000,00 to foster partnerships and promote the growth of TVET colleges in the FP&M sector. This research study commenced in October 2016 and will be completed in
September 2017.

The study had the following clearly defined research objectives:

• Research: Geographic and economic profiling of TVETs to link to sector geographic economic profile
• To address TVET college accreditation and TVET College staff capacity needs aligned to FP&M SETA programmes
• Promote WIL placements of students

                                                                                             14
(iii) Research Study – The Efficacy and Efficiency of the LEAD SETA-TVET Offices in Public TVET Colleges in partnership with JET Educa-tion Services.

The FP&M SETA in partnership with DHET conducted a research study to address the efficacy and efficiency of the Lead SETA=TVET Office Model as implemented by DHET across all
21 SETAs. Funding to the value of R1,284,723,00 was allocated to realise the objectives of this project.

Phase i: Research Outcome:

This phase focused on a SWOT analysis of the LEAD SETA Office Model. Findings and recommendations of the research study resulted in development of standardised SETA-TVET Office
Framework. This research project was imperative to create a standardised/value adding model that enables CSTO’s to operate effectively and efficiently.

This research study culminated in the implementation of the Co-ordinating SETA-TVET Office Model (CSTO Model) in public TVET colleges.

Phase II: Implementation of CSTO Model in progress (across 21setas).

1.3 Organisational Environment

To address, among others, the inherited challenges generally experienced by amalgamated organisations, a focused three-year turnaround plan was prepared and an organisational review
was conducted to identify the pressure points in the organisation. This gave rise to the development of an innovative business model, with a proposed new organisational structure, and
clear delivery mechanisms, that would enable the organisation to deliver on time and to the agreed standard on its commitments, as set out in the Annual Performance Plan.

The FP&M SETA made significant changes to its organisational structure in order to address the implementation of the new business model to ensure cost-effective and efficient service
delivery to the sector. The new business model is already delivering outstanding results and the SETA’s performance has increased year-on-year. Changes have been made to the operational
procedures in order to streamline the organisation to deliver timeously and to acceptable standards.

Generally, staff carried out their duties diligently and enthusiastically, and in line with their agreed new job descriptions and performance agree-ments. Changes that occurred during
the year due to the consequences of the implementation of a new organogram were managed in line with approved HR policies and procedures. Performance management and the
continuous professional development of staff, contributed markedly to the organisation meeting its strategic objectives.

FP&M SETA’s financial performance has improved steadily, with significant strides being made to ensure adequate financial and administrative controls to deliver prudent financial
management, with strict adherence to generally acceptable accounting practices and National Treasury regulations. The SETA continues to deliver its mandate with the 10.5% administration
budget. The FP&M SETA, as guided by the Public Finance Management Act (PFMA), (Act 1 of 1999), has the ultimate objective of promoting sound financial management in order to
maximise the delivery of SETA services through the efficient and effective use of limited resources and financial prudence in addressing specific areas of cost containment in implementation
of the SETA mandate.

In terms of Quality Assurance, the focus of accreditation is moving from compliance to continuous improvement as the quality assurance system in the SETA matures.

                                                                                             15
The Projects Division has implemented optimised internal controls to ensure maximum impact is derived from activities of the Division. Weekly, monthly and quarterly reviews ensure a
valid, accurate Commitments Register. Efficient utilisation of the Monitoring and Evaluation Division to vet project applicants prior to approval assists in high quality partnerships with
stakeholders and providers.

The FP&M SETA implemented a functional and integrated management information system (MIS) aligned to the operational business processes of the SETA. The purpose was to streamline
the operational activities of the SETA and ensure more accurate reporting and efficient record management. The system includes web-based mandatory and discretionary grant application
facilities, as well as management modules, which enhance service delivery in the skills planning and projects divisions. MIS module integration is at 78% complete. Quality assurance
activities were also enhanced with the implementation of the learner management system, which resulted in the automated and controlled issuing of learnership certificates and skills
programme statement of results. Internal modules such as the supply chain management system and HR leave module proved to be time saving and effective. The MIS increased the overall
efficiency of operational activities of the SETA and ensured more accurate reporting and efficient record management.

The FP&M SETA has efficient governance structures in place to ensure good corporate governance, the implementation of relevant policies and procedures, and sound financial
management. Risk areas are continuously being work on. Capacity building workshops are conducted with Management to address early signalling of risks, risk identification, root causes
and the implementation of controls.

The FP&M SETA consistent with the Government-Wide Monitoring and Evaluation Policy Framework and Treasury Regulations adopted an integrated framework for monitoring and
evaluation of performance and service delivery within the organisation. The Division engaged independent Sector Skills Advisors (SSAs) with a view to obtaining an objective perspective
on discretionary grant project implementation and compliance of skills development providers with their accreditation criteria. In the last financial year, approximately 591 projects were
monitored.

FP&M SETA complied with all prescripts of Supply Chain Management (SCM) legislation, aligned to National Treasury regulations and our electronic procurement system was successfully
integrated to the Central Supplier Database.

The FP&M SETA Board provides strategic direction to the FP&M SETA and an Independent Audit Committee plays an oversight role to ensure that the implementation of financial policies
and procedures are in line with the PFMA and other legislative requirements. An Executive Committee is responsible for the monitoring and evaluation of operational activities including
the implementation of action plans.

On 18th April 2017, a fire destroyed the fifth floor at Braampark Forum 1B. Our offices are located on the second floor of this building. Firefighters responded and extinguished the fire,
however the entire fifth floor was destroyed. Water that was used to extinguish the fire, flowed through to the floors below which caused significant damage to ceilings, carpets, furniture
and equipment in the FP&M SETA offices.

                                                                                            16
Human Resource Personnel Expenditure Trends per Programme

                                                 2014/15       2015/16            2016/17       2017/18       2018/19       2019/20       2020/21
                                                  R,000         R,000              R,000         R,000         R,000         R,000         R,000
                                                Personnel     Personnel          Personnel     Personnel     Personnel     Personnel     Personnel
                                               Expenditure   Expenditure        Expenditure   Expenditure   Expenditure   Expenditure   Expenditure
Programme 1: Administration Per

         1 Office of CEO             100%        2,216,000    2,662,671          3,061,996     3,306,956     3,571,512     3,857,233     4,165,812

            Finance/IT               100%        2,903,000    3,250,910          3,888,622     4,199,711     4,535,688     4,898,543     5,290,427

            SCM                      100%        846,000      1,016,842          1,301,530     1,405,652     1,518,105     1,639,553     1,770,717

            Human Resources          100%        1,131,000    1,300,408          1,388,436     1,499,511     1,619,472     1,749,030     1,888,952

            GCRL                     100%        1,442,000    1,645,518          2,073,520     2,239,401     2,418,553     2,612,037     2,821,000

            Regional Offices         10%         672,700       816,221            817,728       883,146       953,798      1,030,102     1,112,510

         2 Communications
           and Skills Planning       100%        517,000       857,938            878,040       948,283      1,024,146     1,106,078     1,194,564
           Manager

            TOTAL                                9,727,700   11,550,509         13,409,872    14,482,661    15,641,274    16,892,576    18,243,982

Programme 2: Skills Planning

            Skills planning and
                                     80%         2,107,200    2,463,388          2,256,779     2,437,322     2,632,307     2,842,892     3,070,323
            research

            Monitoring and
                                     10%         149,200       152,319            182,428       197,022       212,783       229,806       248,191
            Evaluation

            Regional Offices         20%         1,345,400    1,632,443          1,635,456     1,766,293     1,907,596     2,060,204     2,225,020

            TOTAL                                3,601,800    4,248,150          4,074,663     4,400,636     4,752,687     5,132,902     5,543,534

Programme 3: Learning Programme and Projects

            Skills Planning,
            Research and             20%         526,800       615,847            564,195       609,330       658,077       710,723       767,581
            Reporting

  2 & 3 & 4 Projects                 100%        1,126,000    1,257,950          1,009,062     1,089,787     1,176,970     1,271,127     1,372,818

            Regional Offices         60%         4,036,200    4,897,328          4,906,369     5,298,878     5,722,789     6,180,612     6,675,061

            QA Staff                 40%         1,138,000    1,428,109          1,433,884     1,548,595     1,672,483     1,806,281     1,950,784

                                                                           17
2014/15         2015/16            2016/17       2017/18       2018/19       2019/20       2020/21
                                                         R,000           R,000              R,000         R,000         R,000         R,000         R,000
                                                        Personnel      Personnel          Personnel     Personnel     Personnel     Personnel     Personnel
                                                       Expenditure    Expenditure        Expenditure   Expenditure   Expenditure   Expenditure   Expenditure

Programme 3: Learning Programme and Projects (contd)

           Monitoring and
                                       70%              1,044,400      1,066,233          1,276,993     1,379,152     1,489,484     1,608,643     1,737,334
           Evaluation

           TOTAL                                        7,871,400      9,265,467          9,190,503     9,925,743    10,719,802    11,577,386    12,503,577

Programme 4: Quality Assurance, Partnerships and Qualifications Development

           Regional Offices            10%               672,700        816,221            817,728       883,146       953,798      1,030,102     1,112,510

           QA Staff                    60%              1,707,000      2,142,163          2,150,826     2,322,893     2,508,724     2,709,422     2,926,176

           Monitoring and
                                       20%               298,400        304,638            364,855       394,043       425,567       459,612       496,381
           Evaluation

           TOTAL                                        2,678,100      3,263,022          3,333,410     3,600,082     3,888,089     4,199,136     4,535,067

           Overall Total                               23,879,000      28,327,148        30,008,447    32,409,123    35,001,853    37,802,001    40,826,161

                                                                                    18
2. REVISIONS TO LEGISLATIVE AND OTHER MANDATES
Extension of the Current NSDS III - Gazette No 39263

The current NSDS III, which guides disbursement of skills development levies, has been extended until 31st March 2020.

Extension of Tenure for the Current SETA Boards - Gazette No 39394

The tenure for the current SETA Boards has been extended until 31st March 2020 in line with the re-establishment of the SETAs for the same period.

Generic National Artisan Workplace Data, Learner Grant funding and Administration System Policy, June 2015 – The policy standardised artisan funding through the creation
of a single srtisan funding mechanism. The artisan learner grant amount for the period 2018/19 is R165,000,00 per new artisan learner enrolled with effect from 01st April 2018.

2.1 Relevant court rulings

A court ruling was issued setting aside Regulation 3(12), which provides that the remaining surplus of discretionary funds must be paid by SETAs by 01st October of each year into the
National Skills Fund, and Regulation 4(4), which reduced the mandatory grant that an employer could claim back from 50% to 20%.

In terms of the court ruling, the Minister of Higher Education and Training issued Gazette No. 39592 of 2016 on 13th January 2016, which re-promulgated Regulation 4(4) of the Sector
Education and Training Authorities Grant Regulations of 03rd December 2012. The re-promulgation provides that the Mandatory Grant be set at 20%, as per Regulation 4(4). The Minister
has appealed Regulations 3(12) which provides that the remaining surplus of discretionary funds must be paid by SETAs by 01st October 2015 of each year into the National Skills Fund.

SETAs were advised to continue planning based on the SETA Grant Regulations of 03rd December 2012 inclusive of the re-promulgation of regulation 4(4).

Skills Development Circular No. 11/2016 issued on 18th August 2016 confirms the following:

• As things presently stand, with effect from 01st April 2016 SETAs are neither entitled nor obliged to comply with Regulation 3(12).
• It should be noted that if the appeal is ultimately re-instated and is ultimately successful, SETAs will be obliged to comply with the terms of Regulation 3(12).
• In the meantime, SETAs must continue to disclose uncommitted surpluses transferable to the NSF as a contingent liability at the end of each financial year.
•	SETAS are required to continue to submit their applications for the retention of surpluses to National Treasury and the Department of Higher Education and Training as prescribed by
   the Public Finance Management Act (PFMA).
• The Minister received another challenge from BUSA on 30th June 2016 pertaining to Regulation 4(4).
• Regulation 4(4) as gazetted by the Minister on 13th January 2016 remains enforced until the court makes a ruling on the matter.

                                                                                             19
Skills Development Circular No. 15/2017 issued on 30th November 2017 has the following implications for this Annual Performance Plan:

• Regulation 3(12) of the SETA Grant regulations will no longer apply to SETAs and the National Skills Fund (NSF).
• Regulation 4(4) is not affected by the decision and is still in force based on compliance with the statutory requirement outlined in Section 5(a)(v) of the Skills Development Act.
•	The funds which SETAs had previously disclosed as uncommitted surpluses which were due to be transferred to the NSF as a contingent liability at the end of each financial year should
   now be allocated to the discretionary grant.
•	SETAs will continue to submit their respective applications for the retention of surpluses to National Treasury and the Department of Higher Education and Training as prescribed by
   section 53(3) of the Public Finance Management Act.
•	SETAs should also observe National Treasury Instruction No.6 of 2017/18 regarding the retention of surpluses by public entities.

There have been no other significant changes to the FP&M SETA’s legislative and other mandates.

                                                                                            20
OVERVIEW OF 2017/18 TO 2020/21 BUDGET AND MTEF ESTIMATES

3. MEDIUM TERM INCOME ESTIMATES

                                                       2014/15   2015/16        2016/17         2017/18         2018/19   2019/20   2020/21
                                                        R‘000     R‘000          R‘000           R‘000           R‘000     R‘000     R‘000

Levy Income     Based on new grant regulations         315,744   324,323        319,966         347,025         339,552   349,738   360,231

                Administration levy income             41,389    42,651         42,095          45,547           44,566   45,903    47,280

                Mandatory grant Income                 86,348    81,041         79,697          86,756           84,888   87,434    90,058

                Discretionary income                   188,007   200,631        198,174         214,721         210,098   216,401   222,893

Investment income                                      33,298    33,622         38,942          25,482           41,113   42,141    43,194

SDL interest and penalties                              7,814    10,203          8,512           5,250           9,030     9,301     9,580
Donor Funding                                           5,114     3,442           80
Other income                                            178       364             94

Total Estimated Revenue                                362,148   371,954        367,594         377,757         389,695   401,180   413,005

3.1 Expenditure Estimates

                      FP&M SETA                                                    Medium Term Expenditure Estimates
                                                       2014/15   2015/16        2016/17         2017/18         2018/19   2019/20   2020/21
Expenses                                                R‘000     R‘000          R‘000           R‘000           R‘000     R‘000     R‘000

Less Expenses                                          440,302   341,589        370,633         377,757         389,695   401,180   413,005

Mandatory grant expenses                               84,481    66,101         61,687          70,272           68,759   70,822    72,947

Total discretionary spending/commitments including
discretionary and project administration excluding     312,464   230,882        267,226         261,938         276,370   284,455   292,778
spending on previous year commitments

Discretionary expenses on pivotal programmes ( 80%
                                                       128,354   117,975        148,834         193,834         204,514   210,497   216,656
of total discretionary funds received)

Discretionary expenses - project costs (20% of total
                                                       140,367   93,750         98,834          48,458           51,128   52,624    54,164
discretionary funds received)

Discretionary pivotal grant administration expenses
                                                       36,673     9,469          9,459          15,716           16,582   17,067    17,567
7.5% limit

                                                                           21
FP&M SETA                                                                  Medium Term Expenditure Estimates
                                                           2014/15           2015/16           2016/17            2017/18           2018/19           2019/20           2020/21
Expenses                                                    R‘000             R‘000             R‘000              R‘000             R‘000             R‘000             R‘000

 Discretionary project administration expenses 7.5%
                                                            7,070             9,688             10,099             3,929             4,146               4,267           4,392
 limit

 Donor Funding Expenses                                     5,114             3,442               80                 -                 -                   -               -

 Administration expenses                                    38,243            41,164            41,640            45,547            44,566               45,903         47,280

 Surplus/(deficit)                                         -78,154            30,365            -3,039               -                 -                   -               -

Overview of the MTEF expenditure estimates for 2017/18 to 2020/21

Note 1: In order to improve operational and financial performance, the FP&M SETA has implemented dedicated internal projects to address the following:

-	Contract management and payment process deficiencies including mechanisms to address fast tracking of discretionary grant payments in line with timeframes set out in the National
   Treasury Regulations.

The budget information (Medium term estimate) is done on (accrual) basis.

                                                           2014/15           2015/16           2016/17           2017/18           2018/19            2019/20           2020/21
Revenue
R Thousand                                                 Audited           Audited           Audited          Approved          Approved           Approved          Approved
Revenue                                       Notes        Outcome           Outcome           Outcome           Budget            Budget             Budget            Budget

 Tax revenue                                    1              -                 -                 -                 -                 -                   -               -

 Entity revenue                                             41,290            44,189            47,548            30,732            50,143               51,442         52,774

    Entity revenue other than sales                         41,290            44,189            47,548            30,732            50,143               51,442         52,774

    Fines penalties and forfeits                7           7,814             10,203             8,512             5,250             9,030               9,301           9,580

    Interest, dividends and rent on land                    33,298            33,622            38,942            25,482            41,113               42,141         43,194

        Interest                                10          33,298            33,622            38,942            25,482            41,113               42,141         43,194

    Unclassified revenue                        13           178               364                94                 -                 -                   -               -

        Other income                            -            178               364                94                 -                 -                   -               -

 Transfers received                             14         320,858           327,765           320,046           347,024            339,552           349,738           360,231

        Social contributions received
                                                15             -                 -                 -                 -                 -                   -               -
        (social security funds only)

                                                                                         22
2014/15   2015/16        2016/17   2017/18    2018/19    2019/20    2020/21
Revenue
R Thousand                                        Audited   Audited        Audited   Approved   Approved   Approved   Approved
Revenue                                   Notes   Outcome   Outcome        Outcome    Budget     Budget     Budget     Budget

      National government                          5,114     3,442           80         -          -          -          -

         Other government units                    5,114     3,442           80         -          -          -          -

   Skills development (SETAS only)         17     315,744   324,323        319,966   347,024    339,552    349,738    360,231

      Skills development levies                   315,744   324,323        319,966   347,024    339,552    349,738    360,231

          Admin - 10.5%                            41,389    42,651         42,095    45,547     44,566     45,903     47,280

         Employer grant fund levy - 20%            86,348    81,041         79,697    86,756     84,888     87,434     90,058

         Discretionary grants - 49.5%             188,007   200,631        198,174   214,721    210,098    216,401    222,893

Total revenue                                     362,148   371,954        367,594   377,757    389,695    401,180    413,005

                                                  2014/15   2015/16        2016/17   2017/18    2018/19    2019/20    2020/21
Revenue
R Thousand                                        Audited   Audited        Audited   Approved   Approved   Approved   Approved
Revenue                                   Notes   Outcome   Outcome        Outcome    Budget     Budget     Budget     Budget

Administration                                    38,243    41,164         41,640     45,547     44,566     45,903     47,280

Current payments

   Current payments                                38,243    41,164         41,640    45,547     44,566     45,903     47,280

      Compensation of employees                    19,798    20,312         21,128    23,224     21,642     22,291     22,960

         Salaries and wages                        19,798    20,312         21,128    23,224     21,642     22,291     22,960

         Social contributions                        -         -              -         -          -          -          -

      Goods and services                           16,405    19,470         19,078    20,983     21,326     21,966     22,592

      Of which  1

         Agency and support/outsourced
                                                     -         -              -         -          -          -          -
         services

         Communication                              923      1,086           933       973        406        418        439

         Computer services                           -         -              -         -          -          -          -

         Consultants                               1,193     2,667           668       867        874        900        945

                                                                      23
2014/15   2015/16        2016/17   2017/18    2018/19    2019/20    2020/21
Revenue
R Thousand                                               Audited   Audited        Audited   Approved   Approved   Approved   Approved
Revenue                                          Notes   Outcome   Outcome        Outcome    Budget     Budget     Budget     Budget

          Inventory                                        57        89             108        99        118        122        128

          Lease payments                                  3,549     3,714          4,369     4,710      4,767      4,910      5,156

          Repairs and maintenance                          46        34             63         58         69         71         75

          Research and development                        2,076     2,052          2,151     2,331      2,348      2,418      2,539

          Training and staff development                   138       286            216       314        236        243        255

          Travel and subsistence                          1,628     1,423          1,027     1,712      1,483      1,527      1,604

          Other                                           6,795     8,119          9,543     9,919      11,025     11,356     11,451

      Depreciation                                        1,958     1,304          1,416     1,287      1,546      1,592      1,672

      Losses from                                          82        78             18         53         52         54         56

          Sale of fixed assets                             82        78             18         53         52         54         56

   Transfers and subsidies                               402,059   300,425        328,993   332,210    345,129    355,277    365,725

      Employer Grant (SETAs only)                         84,481    66,101         61,687    70,272     68,759     70,822     72,947

      Public corporations and private
      enterprises (subsidies and other                    84,481    66,101         61,687    70,272     68,759     70,822     72,947
      transfers)

          Public corporations                               -         -              -         -          -          -          -

          Private enterprises                             84,481    66,101         61,687    70,272     68,759     70,822     72,947

   Households and non government units                      -         -              -         -          -          -          -

      Discretionary Grant (SETAs only)                   317,578   234,324        267,306   261,938    276,370    284,455    292,778

   Public corporations and private enterprises
                                                         317,578   234,324        267,306   261,938    276,370    284,455    292,778
   (subsidies and other transfers)

          Public corporations                               -         -              -         -          -          -          -

          Private enterprises                            317,578   234,324        267,306   261,938    276,370    284,455    292,778

Total Expenditure                                        440,302   341,589        370,633   377,757    389,695    401,180    413,005

                                                                             24
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